U.K. offshore wind capacity to increase 800% by 2020

The global offshore wind power market is expected to explode over the next decade, growing at a compound annual growth rate of nearly 35 percent, according to GlobalData.

This growth explosion -- from 5.1 GW in 2012 to 54.9 GW by 2020 -- will be driven by the depletion of fossil fuel reserves, the declining cost of wind power generation, and a large investment from the U.K., the research contends. The U.K. contributed to more than half of the global installed capacity last year.

Further, offshore wind will hugely impact the U.K.'s 2020 renewable energy targets, with the country's installed capacity to reach 21 GW by the end of 2020 -- a nearly 800 percent increase from 2012, the research projects.

"While risks for offshore developers remain, in particular the potential rationing of Contracts for Difference (CFD) under the levy control framework, the still nascent transmission regime and the competition from nuclear power, the UK government is firmly supporting offshore wind via the Energy Bill," said Jonathan Lane, GlobalData's head of consulting for power and utilities.